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March 04, 2008

Utah Appears Ready to Abandon Regulation of Keyword Advertising

Prof. Eric Goldman at the Santa Clara University School of Law reported today that the Utah legislature is in the last throes of an embarrassing public retreat from a 2007 law that created an electronic trademark registration barring the use of a registered mark to trigger Internet advertisement for a competitor.

Under the law (S.B. 236), which was never implemented, entities may not cause “the delivery or display” of an advertisement for a business, good or service of the same class as the holder of the registered mark or if the ad is likely to “cause confusion” between the business, good or service of the registered mark and the one being advertised.

The Utah Senate approved the repeal measure (S.B. 151) on Feb. 6. S.B. 151 is set for a third and final reading in the Utah House today, so it seems likely to be passed by the time the state legislature adjourns tomorrow at midnight.

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